South African consumers can expect to pay more for their meat this summer as new data reveals food inflation, particularly for meat, has climbed to a multi-year high.
According to recent figures, overall food inflation rose to 3.4% in September, up from 3.3% the previous month. While increases were seen across all food categories, the inflation rate for meat was a standout, soaring to 11.7%—its highest level since January 2018.
The sharp rise is impacting various meat types. The annual inflation rates for pork and lamb accelerated notably in September, while chicken inflation also continued to rise. The price of individual quick frozen chicken, for example, increased to 5% from 4.4% in August.
For local butchers, the environment is challenging. Kamogelo Moloi, manager of a family-owned butchery that has been operating since 2009, says retaining customers in a high-price climate depends on strong relationships and flexibility.
“You try and get a good supplier. You build a relationship with the supplier irrespective of the price going up and down,” Moloi explained. He emphasized the importance of giving consumers options, such as buying in bulk, and striving to be “as lenient as possible” with pricing while still maintaining a viable business.
Industry bodies attribute the current spike to a market correction. They explain that the current price level is similar to that of 2018, but in the intervening years, the prices received by producers and the shelf prices of meat fell while production costs continued to increase.
Despite these headwinds, which include challenges from diseases such as foot and mouth, there is optimism for the industry’s future. Frikkie Maré, a spokesperson for the Red Meat Producers Organisation, believes growth is possible, contingent on government intervention and access to international markets.
“The thing that we need to do is really increase our exports,” Maré said. “Currently we have a very good local demand but when the economy drops again our price is going to drop and then we have to rely on the export markets.”
Maré identified two critical steps to access premium international markets: getting animal health issues like foot and mouth under control and implementing a reliable traceability system.
The report concluded that while meat and maize meal inflation remained elevated, price decreases were recorded for other staples such as milk, eggs, and white rice, offering some relief to cash-strapped households.
